How Power Changes Leaders’ Decision-Making

It’s not something we tend to talk about or even admit to, but power is a fickle friend.

With one hand it will give you the authority, control or influence to make decisions (and make a difference), but with the other, it will quietly and subtly make you worse at doing so. That’s because the second you become a leader, the power inherent in your role begins to undermine your judgment. And in not just one but five separate critical ways.

The first way power undermines our judgment is by creating distance between us and the people we lead. By both literally and psychologically distancing us from people, our position as leaders makes it harder for us to accurately gauge what they are thinking and feeling. And this is why studies have repeatedly found that the more power people have, and the longer they hold it, the less able they are to empathize with the people they lead. For most leaders, in most situations, the uncomfortable fact is that the distance created by their power means that they understand other people less.

The second way power undermines our judgment is by reducing the flow of information to us, as people tend to be less open with us and less likely to question our thinking. This can be near-invisible to spot, as well (after all, how do you know what people aren’t saying), and so most leaders underestimate just how much it happens. But no matter how good and open a relationship you feel you have with your team, the simple fact that you are their boss and have power over them means they will treat you differently and tailor what they say to you. As a result, there will inevitably be things that you are not told and do not hear.

The third way power undermines our judgment is by simplifying how we process information. On the one hand, having power seems to make leaders more likely to employ higher-level, abstract thinking and less likely to notice and be informed by more minor, detailed things. This doesn’t mean that they can’t do detail. It just means that unless they are specifically focused on understanding the details of something, they will gravitate toward higher-level issues instead. And while this has its benefits, it also means that leaders are more liable to rely on high-level, general rules of thumb. And as a result of this, they are more likely to use stereotypes and generalizations.

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Fourth, the more power leaders have, the more likely they are to rely on their own experiences, instincts and prior knowledge and the less likely they are to make use of others’ views. So, when solving problems, they are less likely to seek out new data. When remembering information, they are more likely to rely on recent, salient or easily retrieved memories. They are also less likely to check their thinking with others. When they do seek out others’ opinions, they tend to be more likely to rely on single sources of information. And they tend to interpret what they are told using their existing knowledge rather than simply accepting new information as it is presented. And the grand result of all this is that leaders are more vulnerable to making assumptions and being influenced by subjective biases.

Finally, power is an ego booster that makes us more prone to overconfidence. A bit of overconfidence can sometimes be useful, enabling leaders to take bold action. But overconfident leaders are less likely to question themselves, less able to course-correct and so more likely to fail. That’s unfortunate because, being more confident, they are also more likely to take risks. In fact, studies show that the more power leaders have at work, the more risks they tend to take both in work and out of it.

Power, then, can fundamentally undermine our judgment and decision-making. So much so that you could be forgiven for wondering how leaders can make any good decisions at all. Well, sometimes, it’s a matter of previous experience or expert knowledge. Sometimes it’s down to luck. Most of the time, though, it’s because the best decision-makers find a way to still make use of the people around them. And there are three things they do in particular.

• Reduce distance: Do all you can to close the gap between yourself and your people. It’s not always easy due to broader cultural norms, but there are always things you can do. Maintain regular contact. Avoid symbols of power, such as sitting behind a large desk. And try this: whenever you meet someone, ask their opinion about something. Try to learn something about the way they think or feel that you didn’t know before the meeting. In other words, invest in closing the perspective gap between you and them.
• Build voice: Encourage people to speak up and share their ideas and opinions openly. Ask people questions. Systematically gather input. Stage discussions in your team meetings. Ask them why an opinion you give could be wrong. Build people’s confidence. And discourage binary thinking. The world is rarely black-and-white, yet, as leaders, we’re often expected to be definite. Unfortunately, every time we do this, we imply that there are right answers and wrong answers, and when we do this, it can evoke anxiety in people that they’ll say the wrong thing. So, rather than saying, “It is like this,” try saying, “The most likely thing is this.” Anything to remind people that, when it comes to decision-making at least, there are rarely 100% correct or 100% wrong answers.
• Discourage ingratiation: This one is simple. Sycophancy is food for overconfidence and poison to the flow of information. So, never accept it and always openly discourage it.

It requires constant work, and it’s often a bit like pushing water uphill. But if we want to make good decisions, and then keep on making them, we need to proactively and systematically push to ensure we use the people around us to support our decision-making and mitigate power’s negative effects. Because power can be a wonderful thing, but it is a fickle friend.